CISB594 – Business Intelligence Business Performance Management

CISB594 – Business Intelligence Reference Materials used in this presentation are extracted mainly from the following texts, unless stated otherwise.

CISB594 – Business Intelligence Objectives At the end of this lecture, you should be able to: Describe the business performance management (BPM) Explain the BPM’s closed-loop processes Describe the differences between scorecards and dashboards Describe some of the basics of dashboard design CISB594 – Business Intelligence

BPM Introduction More than a technology It is difficult for a business to align its strategies and actions in such a way that they ensure successful performance. BPM addressed this alignment.

CISB594 – Business Intelligence BPM defined It helps organization to translate a unified set of objectives into plans, monitor execution, and deliver critical insight to improve financial and operational performance.

CISB594 – Business Intelligence Summary of BPM Process BPM consists of closed-loop set of processes that link strategy to execution in order to optimize business performance BPM closed-loop processes: Strategize : Setting goals and objectives (Where do we want to go?) Plan : Establishing initiatives and plans to achieve those goals (How do we get there) Monitor: Monitoring actual performance against the goals and objectives (How are we doing) Act and Adjust : Taking corrective action (What do we need to do differently)

CISB594 – Business Intelligence BPM Closed-Loop Processes

CISB594 – Business Intelligence Strategize: Where Do We Want to Go? Strategic planning – Strategic objective A general course of action prescribing targeted directions for an organization e.g. To provide technology based services to clients e.g. To increase the number of Postgraduate student intakes – Strategic goal A quantified objective with a designated time period e.g. To ensure at least 80% of the clients have an account with the online service offered by 2012 e.g. To reach 50% increase in numbers of Master’s students by 2015

CISB594 – Business Intelligence Strategize: Where Do We Want to Go? However, there is a possibility for problems in meeting those goals : The strategy gap – Four sources for the gap between strategy and execution: 1.Vision (viability, suitability to the organization, is it aligned right with the main objectives ) 2.People (are they ready? Acceptance to changes? Attitude?) 3.Management (do they agree? Political issues?) 4.Resources (is the infrastructure ready? Platform, network, hardware, financial support, skillsets?)

CISB594 – Business Intelligence Plan: How Do We Get There? Operational planning – Operational plan Plan that translates an organization’s strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results – A project plan that is designed to ensure that an organization’s strategy is achieved

CISB594 – Business Intelligence Plan: How Do We Get There? Operational planning – best practice approach : – Tactic-centric - In tactic-centric planning, the focus is on developing tactics that will meet the strategic goals. After that, the cost of implementing them is considered. If it exceeds what the organization is willing to spend, the plan can be revised.

CISB594 – Business Intelligence Monitor: How Are We Doing? A comprehensive framework for monitoring performance should address two key issues: – What to monitor – How to monitor : using system that has inputs, a process for transforming the inputs into outputs, a standard or benchmark against which to compare the outputs, and a feedback channel to allow information on variances between the outputs and the standard to be communicated and acted upon

CISB594 – Business Intelligence Performance Measurement Performance measurement system (under monitoring) A system that assists managers in tracking the implementations of business strategy by comparing actual results against strategic goals and objectives The most popular system in use is the balanced scorecard (BSC) – The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives

CISB594 – Business Intelligence Balanced Scorecards

CISB594 – Business Intelligence Balanced Scorecards

CISB594 – Business Intelligence Example of BPM system: Performance Dashboards and Scorecards Dashboards – a dashboard is an executive information system user interface that (similar to an automobile's dashboard) is designed to be easy to read Dashboards and scorecards both provide visual displays of important information that is consolidated and arranged on a single screen so that information can be digested at a single glance and easily explored

Performance Dashboards

CISB594 – Business Intelligence Performance Dashboards Dashboards versus scorecards – Performance dashboards Visual display used to monitor operational performance – Performance scorecards Visual display used to chart progress against strategic and tactical targets CharacteristicDashboardScorecard Purpose Measures performanceCharts progress against targets Users Supervisors, specialists Executives, managers, staff Updates “Right-time” feeds Periodic snapshots DataEvents – as they happenSummaries Display Visual graphs, raw data Visual graphs, text comments

CISB594 – Business Intelligence Performance Dashboards Dashboard design – “The fundamental challenge of dashboard design is to display all the required information on a single screen, clearly and without distraction, in a manner that can be assimilated quickly" (Few, 2005)

CISB594 – Business Intelligence Act and Adjust: What Do We Need to Do Differently ? – Managers’ creativity counts at this stage – The common problem is that management has little time to review results from a strategic perspective, decide what should be done differently, and act on the revised plans – a challenge

CISB594 – Business Intelligence Performance Dashboards – What to look for in a dashboard Use of visual components (e.g., charts, performance bars, sparklines, gauges, meters, stoplights) to highlight, at a glance, the data and exceptions that require action. Transparent to the user, meaning that they require minimal training and are extremely easy to use Combine data from a variety of systems into a single, summarized, unified view of the business Present a dynamic, real-world view with timely data refreshes, enabling the end user to stay up-to-date with any recent changes in the business.

CISB594 – Business Intelligence BPM Architecture and Applications BPM architecture – A BPM system needs three components in order to contribute to the successful implementation of strategy: 1.Database tier 2.Application tier 3.Client or user interface

CISB594 – Business Intelligence BPM Architecture and Applications BPM architecture – Database tier designs include: Transactional data stores Application data marts Centralized data warehouse

CISB594 – Business Intelligence BPM Architecture and Applications BPM architecture – BPM applications: 1.Budgeting, planning, and forecasting 2.Profitability modeling and optimization 3.Scorecard applications 4.Financial consolidation 5.Statutory and financial reporting

CISB594 – Business Intelligence BPM Architecture and Applications BPM architecture – BPM user interface The user interface is the bridge between the BPM applications and the end user The Web browser is currently the primary tool for accessing information in a BPM system Spreadsheets are a popular alternative when a rich user interface is needed to support the analytical and computation needs of the user BPM interfaces should provide guidance to the end user

CISB594 – Business Intelligence Now ask if … You are now be able to: Describe the business performance management (BPM) Explain the BPM’s closed-loop processes linking strategy to execution Describe the differences between scorecards and dashboards Describe some of the basics of dashboard design CISB594 – Business Intelligence

To attain the learning outcomes of this topic Study the slides and answer the following questions: 1.Explain Business Performance Management from business perspectives 2.Identify the BPM processes 3.Explain strategic objectives and strategic goals 4.Explain performance management system 5.Compare and contrast performance dashboard and performance scorecards 6.Discuss the important characteristics of a well designed dashboards

CISB594 – Business Intelligence A bit on the assignment

CISB594 – Business Intelligence What is expected in the submission Your group work is to conduct investigation/information gathering in a business of your choice to determine how data warehousing, data mining, OLAP, and visualization business intelligence tools could assist the executives/management team in their work. Write up a proposal describing your findings. Include discussions on benefits, disadvantages as well as diagrams in your report as you see appropriate. Identify a business. Assume that your group has been commissioned by the business to produce a presentation to the board proposing/showing how Business Intelligence can be beneficial to the organization. Your proposal should be in the form of a report, describing the background of the business, problem faced (from the context of business intelligence only), recommendation for solution and a conceptual system overview (supported by architectural diagram and other necessary details) Screen mock-ups to demonstrate the end users’ side will also be useful. You are not required to produce any working software. Screen mock-ups can be originated in any technology/software of your choice.

CISB594 – Business Intelligence Section B : Group Assignment (Marking Scheme) The business scenario - Description of the current system (without BI) Managements requirements based on the current system (common business questions asked by the management to help them with decision making Critical views on how BI can be beneficial to the management team from business perspectives 15 Proposal for BI system Discuss the architecture and data warehouse model approach – include diagram and justify the choice Discuss whether your team will recommend the organization to purchase tools from vendors or build the system itself. Justify your suggestion. Discuss and build the mock screen to demonstrate support for decision making for the users mentioned in the business scenario (images of dashboards will be good) Discuss what are the possible implementation issues your team foresees to happen in the organization and how it can be addressed. Discuss how web analytics and customer analytics aspect in data mining can be applicable for data in your assignment project. 35 Presentation skills and a demonstration of a good team work, including PowerPoint slides. To be demonstrated through the executive summary and the PowerPoint presentation. 5

CISB594 – Business Intelligence To share with me what are your plans for the ’data mining’ part of the assignment Web analytics & Customer analytics -Apply them to your business scenario -Explain how web analytics and customer analytics work in the business, how can it potentially benefit the business

CISB594 – Business Intelligence Dashboard Proceed to design your dashboard Refer to the business questions you have asked earlier and translate the answer that BI would have offered in a form of a dashboard. May use any tools

CISB594 – Business Intelligence